Why do you have an issue if PDN were to make a better offer?
How did you get from 51% to 25% and ZERO VALUE for ablation?
The key terms of the STB Agreement are as follows:
(a) The Company has an exclusive, six-year option to acquire STB’s 51% mineral interest in the Hansen Uranium Deposit and immediate surrounds (STB Option).
(b) Once the conditions precedent contained in the STB Agreement were satisfied, the Company became obliged to pay STB US$1.0 million and issue STB with Shares to the value of US$2.5 million (such value being calculated by using an issue price equal to the five (5) day volume weighted average price of the Shares in the five (5) days immediately prior to the date of issue) (STB Acquisition Shares). The Company has already paid STB US$1.0 million and has also issued the STB Acquisition Shares to STB (being 74,556,028 Shares to the value of US$2.5 million).
(c) The Company shall undertake feasibility studies into the development of a commercial scale mining operation at the Hansen Uranium Deposit, evaluating all potential mining methods.
(d) To fully exercise the STB Option, the Company is obliged to pay STB a further US$2.0 million and issue STB Shares to the value of US$7.5 million (such value being calculated by using an issue price equal to the five (5) day volume weighted average price of the Shares in the five (5) days immediately prior to the date of issue). These Shares are to be issued in 2 tranches, with the issue of the second tranche occurring 180 days after the issue of the first tranche.
(e) If the Company has not exercised the STB Option to acquire STB’s mineral interest within 3 years of satisfaction of the conditions precedent contained in the STB Agreement, that is on or before 28 July 2014, it shall have the right to extend its exclusive option for a further 3 years by paying STB a further US$1.0 million and issuing STB further Shares to the value of US$1.0 million (such value being calculated by using an issue price equal to the five (5) day volume weighted average price of the Shares in the five (5) days immediately prior to the date of issue) (STB Option Extension
